Shares of Reliance Industries (RIL) rose nearly 3% on bourses today ahead of the opening of its Rs 10,440 crore share buyback scheduled for tomorrow.
The company's Rs 10,440-crore share buyback offer, which is possibly the largest such programme in the history of the Indian capital market, starts from tomorrow and will close on January 19 next year.
Shares of the company settled 2.51% higher at Rs 815.45 on the BSE. During the day, the stock had surged 2.88% to a high of Rs 818.40.
At NSE, the scrip closed at Rs 817.50, up 2.86% from the previous close.
RIL would buy back up to 12 crore equity shares worth Rs 10,440 crore from the open market at a maximum price of Rs 870 apiece in its first share buyback since 2005.
Citigroup global Markets and DSP Merrill Lynch has been appointed as managers to the buyback offer.
Analysts said share buyback could be aimed at helping the stock regain its lost glory, given their sharp plunge of 35% last year, against a fall of about 24% in the market benchmark Sensex.
A share buyback will help boost investor confidence and avoid a free-fall in the stock price, they said.